Financial Planning Far from Being Viable for Mortgage Brokers, Experts Say

Lucas Gilmore, “Big 4″ observer
December 22, 2010 /

Accounting and consultancy firm Deloitte said that key players in the mortgage lending industry believed mortgage brokers could have a better opportunity in life insurance distribution, but expanding from brokerage to financial planning might hamper their activity.

Efforts to extend activities to include financial planning might fail along the way, revealed mortgage lending industry experts in a roundtable discussion spearheaded by Deloitte. However, if mortgage brokers are given the chance to join forces with financial planners, the expansion might sound sensible, they added according to James Hickey, banking partner at Deloitte.

Hickey explained, however, that combinations of mortgage brokers and financial planners could even face tough challenges in the real world as it is proven to be hard to work on.

Of the participants to the discussion, 27 percent believed that wealth management organizations might acquire these groups of mortgage brokers in the next 27 years.

Hickey said that the logic of why brokerage looks engaging for most wealth management organizations is that being good at managing financial planners could also mean being capable in extending “that skill set to a group of mortgage brokers.”

Hickey added that “wealth managers who deal on the asset side of the balance sheet to the consumer is certainly not familiar with dealing with the debt side of the balance sheet and that’s the hard thing.”


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